RBS Computer Failure

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SUMMARY OF CASE STUDY

The Royal Bank of Scotland (RBS) was hired one junior technician in India. The system of the bank was glitch and caused a left millions of customers unable to access their accounts. It accidently happened and wiped out the information during a routine software upgrade. As a Chief Executive of RBS, Stephen Hester assumes that outsourcing never had caused the problems but things go wrong in technology. They have to learn the lessons from what went wrong in RBS and try to make then less likely to happen in the future. It was affected 17 million customers after software updated from the banks’ computer system. It was creating an outstanding more than 100 million transaction that were not paid. They have already made a promise that the bank will repaid for the cost of late payment born as a result of the overdue.

TASK 1
QUESTION 1

We can define that outsourcing is a practice that having a done certain job functions outside a company instead of having an in-house department or employee handle it. We can outsource it either to expert company or an individual. We must use a strategic solution to less the impact on stability of finance and company growth.
The competitive advantage that can be gained by companies through Information System or Information Technology outsourcing is efficiency and effectiveness in product or services. According to Vishal Patel, Executive Director of Copy Cat Ltd, efficiency and effectiveness are keys to every company to maintaining its competitive edge and that is where we come in; we provide IT solutions to our clients that will enable deliver a good quality product to their customers to do so within the shortest time possible. The company must have it because to main...

... middle of paper ...

...information from internet and also the newspaper to know these issues. We have known that China and India have a billion people and we do not worry about the employee. The work always finishes due to the time line. Before this I do not know this information and after do this the assignment I knew it detailed.

Works Cited

S. van Cuijck, S. Laurensse and J. Gorrono. (2009) Opportunities & Threats from Outsourcing to China, [online],
Available: http://outsourcingpolicy.blogspot.com/ [29 MAY 2009].

Bob McDowall. (2011) Cloud computing: Is it a threat to Indian outsourcers?, [online],
Available: http://articles.economictimes.indiatimes.com/2011-04-26/news/29475334_1_cloud-outsourcing-instant [26 APRIL 2011]

Visha Patel. (2011) Offering competitive advantage through IT, [online],
Available: http://www.copycatltd.com/docs/CIO%20Oct%20-%20copycat.pdf [OCTOBER 2011]

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